White House Aims to Suppress Contractor Layoff Notices

October 1, 2012

The government will foot the bill for contractors’ litigation fees if employees challenge layoffs caused by sequestration, White House officials said last week.

The guidance, which was issued to senior finance and procurement officials at agencies, addressed questions that arose after the Labor Department told contractors in July to refrain from warning their employees about potential layoffs due to the possibility of severe automatic budget cuts — known as sequestration — that could take effect Jan. 2.

Lockheed Martin officials said Monday they would not issue layoff notices in light of the government’s assurances.